Dividend ETFs: How SCHD and FDVV Measure Up
Key Points
Schwab U.S. Dividend Equity ETF offers a lower expense ratio and higher dividend yield than Fidelity High Dividend ETF
Fidelity High Dividend ETF has delivered stronger five-year growth while Schwab U.S. Dividend Equity ETF has maintained lower price volatility
Fidelity High Dividend ETF concentrates heavily on the technology sector whereas Schwab U.S. Dividend Equity ETF spreads weight across technology, healthcare, and consumer defensives
- 10 stocks we like better than Schwab U.S. Dividend Equity ETF ›
Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD) offers lower expenses and a higher dividend yield with reduced volatility, whereas Fidelity High Dividend ETF (NYSEMKT:FDVV) provides higher historical growth through a heavy tilt toward technology stocks.
Investors seeking reliable income streams often evaluate these two dividend-focused heavyweights. While both funds prioritize companies that return capital to shareholders, they differ significantly in their sector concentrations and cost structures. This comparison examines whether the Schwab fund’s established yield or the Fidelity fund’s growth-oriented tilt better suits a long-term strategy.
Snapshot (cost & size)
| Metric | FDVV | SCHD |
|---|---|---|
| Issuer | Fidelity | Schwab |
| Expense ratio | 0.15% | 0.06% |
| 1-yr return (as of June 12, 2026) | 22.60% | 26.10% |
| Dividend yield | 2.80% | 3.31% |
| Beta | 0.86 | 0.67 |
| AUM | $9.8B | $97.5B |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Schwab fund is significantly more affordable with an expense ratio of 0.06%, compared to 0.15% for the Fidelity fund. Additionally, the Schwab fund offers a higher payout, with a yield gap of 0.47 percentage points.
Performance & risk comparison
| Metric | FDVV | SCHD |
|---|---|---|
| Max drawdown (5 yr) | (20.20%) | (16.80%) |
| Growth of $1,000 over 5 years (total return) | $1,887 | $1,520 |
What's inside
The Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD) tracks high-yield U.S. stocks with strong financial ratios. It manages 103 holdings, with sector allocations balanced across technology at 19.00%, consumer defensive at 18.00%, and healthcare at 18.00%. Its largest positions include Texas Instruments (NASDAQ:TXN) at 5.78%, Qualcomm (NASDAQ:QCOM) at 5.64%, and UnitedHealth Group (NYSE:UNH) at 5.43%. Launched in 2011, the fund has a trailing-12-month dividend of $1.06 per share. This approach helps it maintain a lower beta than many peers.
Conversely, the Fidelity High Dividend ETF (NYSEMKT:FDVV) overweights sectors with high yields but currently allocates 31.00% to technology. Its top holdings include Nvidia (NASDAQ:NVDA) at 6.71%, Apple (NASDAQ:AAPL) at 5.92%, and Microsoft (NASDAQ:MSFT) at 4.11%. The fund launched in 2016 and holds 119 stocks. Over the trailing 12 months, it paid $1.66 per share. This tech-heavy strategy has captured more upside during recent growth cycles, resulting in higher five-year total returns but also a deeper maximum drawdown.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
The Schwab U.S. Dividend Equity ETF (SCHD) and the Fidelity High Dividend ETF (FDVV) are both exchange-traded funds (ETFs) designed to appeal to income-oriented investors. Here is how they compare to one another.
First, there’s SCHD. This fund holds over 100 U.S. stocks, with a balanced allocation spanning technology, consumer defensive, and healthcare sectors. As for performance, the fund has delivered a total return of 214% and a compound annual growth rate (CAGR) of 12.4% since its inception in 2011. That trails the S&P 500, which has generated a total return of 306% and a CAGR of 15.4% over the same period. SCHD boasts a strong dividend yield of 3.3% and a very affordable expense ratio of 0.06%.
Then, there’s FDVV. This fund also holds slightly over 100 holdings; however, it allocates a larger percentage to the tech sector. Given its higher tech holdings, FDVV is slightly more volatile than SCHD, with larger returns in bullish periods and larger drawdowns during corrections. Moreover, it has a lower dividend yield of 2.9%. FDVV also has a higher expense ratio of 0.15%, although that remains quite affordable. As for performance, the fund has delivered a total return of 242% since 2011, with a CAGR of 13.4%.
In summary, conservative investors may favor SCHD due to its higher dividend yield and lower fees. Yet, investors willing to take on more risk may prefer FDVV due to its better long-term performance and larger tech-sector allocation. In the end, both funds have provided stable income and growth over the last 15 years at a reasonable cost.
Should you buy stock in Schwab U.S. Dividend Equity ETF right now?
Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $417,305!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,293,148!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 22, 2026.
Jake Lerch has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, Qualcomm, and Texas Instruments. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
Recommended Articles
